By David Goldman, NCS
(NCS) — “Reclaiming my time” made a comeback Wednesday – and with it, Rep. Maxine Waters added a brand new, made-for-TikTok tag: “Can you shut him up?”
The fiery alternate between Waters, the Democratic rating member on the House Financial Services Committee, and Treasury Secretary Scott Bessent echoed the well-known 2017 standoff between Waters and President Donald Trump’s first-term Treasury secretary, Steven Mnuchin. That’s when Waters’ repeated use of the phrase “reclaiming my time” went viral.
During Wednesday’s listening to, Bessent steadily talked over Waters, attempting to appropriate the California congresswoman’s message about tariffs and inflation. When a number of “reclaiming my time” catchphrase drops did not cease Bessent from talking, Waters turned to Committee Chairman French Hill and requested for assist in silencing Bessent – help that by no means arrived.
Theatrics apart, the substance of Waters and Bessent’s argument is essential to the continued debate about Issue No. 1 for American voters on this yr’s midterms: affordability.
The alternate
Waters famous that tariffs have prompted sure costs to rise and requested Bessent, “Are tariffs inflationary?”
“According to the San Francisco Federal Reserve with 150 years of data, tariffs do not cause inflation,” Bessent replied.
Waters disagreed, citing rising costs for sure items, similar to espresso and bananas. Then she argued that a few of the Trump administration’s excessive tariffs had been making houses much less inexpensive at a time when the price of shopping for a house feels out of attain to many Americans.
“One clear reason the housing crisis has grown worse is that you and the rest of the Trump administration levied tariffs on housing production goods like lumber and steel,” Waters stated.
“Congresswoman, lumber is at a five-year low. Let’s just have the facts,” Bessent interjected to Waters’ shouts of “reclaiming my time.”
After Bessent stopped speaking, Waters demanded a “yes or no” response as to if Bessent would function a “voice of reason” on affordability within the Trump administration.
Bessent was having none of it.
“You seem confused as to the definition of inflation,” Bessent stated. “The biggest reason for the housing increase was the mass of unfettered immigration you let in.”
“Can you shut him up?” Waters demanded.
“Can you maintain some level of dignity?” Bessent retorted.
The inflation argument
Both Waters and Bessent raised vital factors that assist clarify a few of the divide between traditionally low American client sentiment and a by-most-measures booming US economic system.
Waters is appropriate: Tariffs have raised certain prices, together with espresso and bananas – significantly earlier than the administration late final yr reversed course and exempted some produce that doesn’t develop within the United States from its tariff regime. Furniture, some clothes and different gadgets which are made virtually completely abroad have additionally risen in value.
But Bessent can be appropriate: Historically, main will increase in tariffs don’t trigger broad-based inflation.
How is that attainable?
The San Francisco Fed report Bessent cites notes that main will increase in tariffs are likely to trigger companies and customers to develop unsure concerning the state of the economic system. Fear of rising costs traditionally drives client sentiment decrease at first, and it leads companies to pause hiring and even reduce jobs.
That uncertainty and rise in unemployment tends to gasoline a near-term dip in demand for items, which counterbalances the worth will increase from tariffs.
That’s largely what occurred in 2025: Unemployment principally rose all year long, rising to 4.4% in December from 4% in January, whereas annual inflation ended a bit decrease than the place it began, at 2.7% vs. 3%.
But the San Francisco Fed report additionally notes that tariffs are likely to trigger long-term value will increase, whereas the unemployment price tends to return to the place it began earlier than tariff will increase.
So tariffs aren’t technically inflationary, as a result of they don’t gasoline continued value beneficial properties. Instead, they function an import tax that results in a one-time value improve.
For customers, the distinction doesn’t matter a lot: They’re paying greater costs, and whether or not or not that’s brought on by inflation or taxes doesn’t change the truth that their wallets are thinner.
The housing argument
Bessent argued that an inflow of immigration through the Biden administration despatched housing costs hovering, citing a Wharton study that confirmed provide couldn’t sustain with demand in cities with quickly rising immigration populations, pushing up housing costs.
But that’s not the full story. Immigrants are overrepresented within the development enterprise answerable for constructing America’s houses. So immigrants play an important consider addressing the underlying downside in housing affordability: The United States has about 4 million fewer homes than it needs.
Waters additionally stated that tariffs have raised costs of essential homebuilding parts like lumber and metal due to Trump’s 10% tariff on softwood lumber and 50% tariff on international metal.
But Bessent accurately famous that lumber costs have fallen over the course of the previous yr. They’re not fairly on the five-year lows he cited, however lumber costs fell sharply within the second half of 2025 and are very near the place they had been in 2022.
Paradoxically, lumber costs have fallen due to tariffs. Fearful of a Trump tariff on constructing provides, US importers introduced in big provides of Canadian lumber, the place the vast majority of US homebuilders supply their supplies. That created a provide glut that despatched costs tumbling.
That in all probability received’t final: Interest charges are coming down, and Congress is taking on a invoice subsequent week designed to incentivize homebuilding. That might drive up provide, which might steadiness out with demand as soon as the stockpiles come again to regular.
The-NCS-Wire
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